Archive for April, 2011

Cloud computing getting more complex by the day (AMZN, GOOG, AAPL)

By: ispeculatornew | Date posted: 04.29.2011 (5:00 am)

Very recently, I wrote a post about the brilliance of Amazon’s (AMZN) latest move in the clouds as it launched a solution that fits the needs of people like you and I, namely just storing documents, music and photos among other things. While the big cash remains with business cloud clients, attracting the general population could help build very solid cash flows and despite the business being low margin, the flows are so consistent that it remains a very solid business.

Risky business?

The risk of course is significant in the cloud businesses. Last week, you might have noticed several big websites and web based services experienced downtime. What caused it? Server problems on Amazon’s AWS (Amazon Web Services) that started early Thursday morning and remained unresolved for several hours with more problems occurring in the next few days.Needless to say that the impact for companies that experienced downtime is significant both financially and from a PR standpoint. As our economy moves to the digital world, the reliance on these systems becomes increasingly important and a day like Thursday will certainly be brought up when Amazon sales guys meet with potential clients. Can a hospital store its data in the clouds and risk security breaches or offline time? It is debatable. In cases likes these, both the affected companies take a serious hit. It’s funny how Amazon goes off about the huge promise and importance of AWS services in its earnings calls but on a day like today, we are quickly pointed to the fact that it only represents 2% of Amazon’s revenues and should not be a source of concern. Funny how that works.

Moving to the clouds will not stop

As many questions as there is regarding cloud computing, the move will continue. Despite all of the risks involved, I think it remains a cheaper, better and even often more secure method of running things. That is why companies like Microsoft (MSFT), Google (GOOG) and Apple (AAPL) are putting so many resources into their cloud strategy and why I expect more competition to jump in. Trend Micro has already jumped in  with its own cloud security solutions to solve this.  I think it will be interesting to see what kind of products come out of these companies and how much importance these units will gain within companies like Google and Apple. Some have been writing about companies stopping their move to the clouds but I don’t see it happening. The fact is that no matter where your network is, there are risks involved and being in the clouds or not does not change that.

How big of a business will this become?

I think it will be huge. Not only will most of the international companies be using these services but they will use it more and more and become dependent on it. The big thing is that despite what some would think, the barriers to entry for cloud computing are significant. Google, Apple, Facebook and others are building huge data warehouses, have expensive and rare expertise and it will be difficult for companies to join in. What does this mean? I think it means less competition and as commercial clients become addicted to the clouds, prices will go up and the activity will become more profitable.

It’s not an easy road….analogy between Iron Man competition and Financial Independence

By: ispeculatornew | Date posted: 04.28.2011 (5:00 am)

Have you ever wondered by so few individuals are able to one day live off of a passive income portfolio? Many are able to get by either counting on a government or other pension,  by diminishing their expenses, by working longer than expected, etc. But how many people do you know who were able to reach financial independence and live off of their passive income (dividend and other) without touching their capital? Very few I would guess.

Iron Man is a competition that includes a marathon, the equivalent of a marathon swimming and also on a bike. It’s something that is often done in 12 hours and sometimes a few more hours…. it’s not easy at all, but the participants usually are all capable of making it through.

It’s not because they can’t do it

Every Iron Man competitor generally has the skills and body to finish the race. The same could be said about financial independence. I strongly believe that in 90% of cases, that goal is not only reachable but also very reasonable to expect. It’s not about how much you are paid per hour, what school you went to or even the skills that you have. I truly believe that is goal is possible for almost every individual.

Possible? Absolutely. Easy? Not even close

While Iron Man participants are able to finish the race, they usually will feel negative about the outcome for a good portion of the race. I can guarantee that no matter how good your plan is, you will often feel discouraged and disappointed by the performance and improvement of your portfolio.

It’s not about taking shortcuts

Iron Man is a competition that values endurance and consistence, I think the same is true for building a solid passive income portfolio. It will always be tempting to take shortcuts to improve the size and the speed of your accumulation. But as I wrote last week, I think the key to growing your portfolio has very little to do with being aggressive/taking shortcuts. It’s about being consistent with your investments, your contributions and everything else over long periods of time.

You will have setbacks

In Iron Man as in many other sports, athletes encounter setbacks such as injuries that can severely challenge their will, their determination, etc. I think it’s important to understand that setbacks will also happen when you are investing. Over a couple of decades of investing, you will experience market crashes, changes in the markets, changes in your personal circumstances, etc. All of these will be tests to see if you can keep your focus and stay on task.

In the end, success depends on you

It’s easy to blame family, friends and work for lacking time to train, injuries, and other factors that might have slowed down Iron Man athletes. But in training as in everything else, the major factor is not others, events or circumstances. It’s all about you. Are you dedicated enough to invest in a smart, dedicated and consistent manner and keep it up for 20 years?

It seems like a never ending road

It’s easy to put off a run, a swim, a good night of sleep or a good meal when the race is 8 months away isn’t it? I would argue that it’s also the case for investing. Why start investing when you are 40 years away from retirement? Why be focused on dividend stocks when you can try a few mining stocks and revert if it doesn’t work? Etc, etc. The truth is that you should start planning and executing your dividend portfolio right now. Not 10 years from now, not 10 months from now and not even 10 days from now. It’s just too easy to put it off a little bit longer….

You can do it

It seems like such a “cliche” but it’s true. Every one of us can get to the point where our passive income can account for all of our expenses. As I’ve said a few times in the past, I always set aside a specific amount invested in a steady and consistent portfolio and take a portion of what’s left to be more aggressive with my long & short tech stock picks. Are they paying off? You bet. Things are going great. But I am staying on course with the rest of my portfolio as I slowly head towards my finish line; financial independence.

Adding a new tech stock to our radar: Tencent Holdings Limited (TCEHY)

By: ispeculatornew | Date posted: 04.27.2011 (5:00 am)

As I am sure that you had figured out, the reason why I discussed pink sheet stocks yesterday was because for the first time, I am adding one of those stocks to the list of stocks that we follow. Having a pink sheet stock was not something that we were aiming for and it certainly had not been planned but after hearing over and over about Tencent Holdings, we decided to look into it despite the fact that it is not traded on US exchanges. The good news is that it can be traded as a pink sheet thus avoid the fees and complications of trading Tencent in its home market; the Hong Kong stock exchange.

What is Tencent Holdings?

It is somewhat ironic for me of all people to become interested in Tencent Holdings because it follows a model similar to the one that Yahoo (YHOO), IAC Interactice (IACI) and other content companies that I have been very critical of follow. But the model is not necessarily bad, it’s more in terms of implementation. I have been fairly bullish about Berkshire Hathaway (BRK.B) which is also a conglomerate. Of course, Tencent, like Yahoo and IACI is only involved in tech units and is thus less diversified than the company ran by Warren Buffet. I became more aware of Tencent when researching ways to invest in Facebook as Tencent is a shareholder in Digital Sky Technologies, one of the leading technology funds.

Why isn’t Tencent Holdings listed in the US?

I wish I had the answer and maybe someone here knows, please do leave us a comment if you do. I will assume that the costs involved are simply greater than the potential benefits at this time.

Is it all about China now?

It would certainly seem that way wouldn’t it? I did add Youku (YOKU) last week and did discuss going long Chinese internet stocks against US ones. But no, it’s not all about China of course. Being what will soon be the most important market in the world does however mean that owning big players there and trading them is critical to what we do in the technology field.

Here are some highlights:

-Revenues have been increasing at great pace from 2,8M RBM in 2006 to 7,15M in 2008 and 19,65M in 2010.
-Profits have increased at a similar pace from 1,063M in 2006 to 9,875M in 2010.
-Tencent Holdings does pay out a dividend of HKD 0.55 per share (as per 2010)

Overall thoughts

Being a pink sheet stock is certainly not a positive for Tencent and perhaps the only good thing about it is that it means many large investors cannot or will not refuse in Tencent despite it being a good value. I’m not sure that I would ever go short on a pink sheet stock (if it’s even possible) but I do think this could be a good long term buy and will certainly be tracking it in the near future.

Disclosure: No current position on Tencent (TCEHY)

What is a pink sheet traded stock?

By: ispeculatornew | Date posted: 04.26.2011 (5:00 am)

I am confident that while most of you have never traded a pink sheet stock, you have heard of them, know a few of the companies and have stumbled upon a few of the symbols over time. I will be discussing one of these stocks tomorrow and expected to get a few questions regarding the pink sheet stocks so I took the liberty of answering some of them before you even ask. Hopefully it helps and I’ll be more than happy to give a shot at any unanswered ones.

What is a pink sheet stock?

In the US markets, there exist a few stock exchanges such as the New York Stock Exchange (NYSE) and the Nasdaq. Companies can become listed on these exchanges by doing a variety of things that include:

-Having a balance sheets and sales numbers that fit the exchanges requirements
-Paying annual fees to get listed
-Fulfilling a variety of listing requirements such as Sorbanes-Oxley

All of these require both time and resources and some companies choose to not be listed for a variety of reasons. Many choose to do so because the costs involved are too important to be worth it. But others simply choose not to or they get kicked off of the exchanges for different reasons that would include insufficient trading volume.

Are these pink sheet companies all tiny companies?

Not at all. To give one example, Nestle, the giant food company is not traded on US stock exchanges but it is traded in the pink sheet market.

Is there any volume or liquidity on these companies?

Like anything else, it really depends on each stock. For example, Nestle (NSRGY) often trades over 1 million shares per day giving shareholders all kinds of liquidity. So like everything else it depends on volume.

What are some concerns with trading pink sheet stocks?

I would say that a major one is that since accounting standards are not the same, you have to be careful about comparing numbers from these companies to other ones as standards could be significantly different. If the stock trades on other major markets it becomes less of a concern. Nestle for example is traded on Swiss markets.

Another concern is that many pink sheet stocks become unlisted because they are in financial trouble and are unable to satisfy the stock exchanges requirements. These stocks must then move to pink sheet markets.

Who regulates this market?

Because Pink Sheets stocks are considered to be over the counter (OTC), there are very few rules and laws that apply to these stocks. Because of that, price manipulation is a bigger problem.

New Trade: Long Priceline (PCLN) & Short Monster Worldwide (MWW)

By: ispeculatornew | Date posted: 04.25.2011 (5:00 am)

After being able to close out our trade on Long WebMD (WBMD) & Short IAC Interactive (IACI) last week, it meant that I would be able to open a new trade which was obviously very good news. It was a surprise to see the most recent trade turn to out successful so quickly but given KNOT’s volatility, things can indeed go very quickly. Things continue to go very well for us so far this week, better than we could honestly expect or hope for as our average trade has returned 12.99% so far this year translating into an annualized returned over 100%. Our objectives are much more modest and since in both of the previous years we had our best results at the start of the year, we can only work on doing better this year.

Today, we are opening a new trade and while the names and sides are common, pairing them up together is now. I have consistently been bearish about Monster Worldwide (MWW) but would usually trade it against Dice Holdings (DHX), a similar name. The trade does not look as good this time around. In a similar way, I tend to go long Priceline (PCLN) against other internet travel companies but not this time around. Surprisingly, you will notice that these two companies trade at almost identical forward P/E ratios. Before going further, let me show you the main numbers I was looking at:

[table “271” not found /]

Long Priceline (PCLN)

Analysts have been underestimating Priceline’s growth potential for years now and despite the chart that you can see, I still believe that Priceline has a lot more growth left in it. The company has been in some regards the performing dot com stock for years now and its sales growth of over 30% makes its P/E ratio look very cheap in my opinion. The company continues to face very solid competition in internet travel industry and while I do fear to some extent the traffic numbers reported by compete (at the bottom of this post), I do still consider that the company has a lot of growth left. Competitors such as Travelzoo are proving to be much better competition than expected but Priceline remains the top brand in travel and as long as it can keep up the premier service, I’m not worried. We did trade Priceline successfully earlier this year, hopefully things will go as well this time around.

Short Monster Worldwide (MWW)

Monster is one of those companies along with Blue Nile that always seems to be trading at a premium without much justification behind it. I did short it earlier against Dice Holdings in what is my preferable trade because both are in the same industry (online job postings) and while DHX usually maintains a higher growth rate, its P/E ratio has often been much smaller.. it made no sense and provided great trading opportunities. But not this time around. Still, Monster faces increasing competition and the upcoming IPO from LinkedIn will only make things more difficult. The company has been posting flat growth and I don’t see any logical reason behind a P/E ratio over 20.

Disclosure: No positions on Priceline (PCLN) or Monster Worldwide (MWW)

Financial Ramblings

By: ispeculatornew | Date posted: 04.23.2011 (5:00 am)

It is tax season and we certainly found a very interesting website (for those based in the US) to find out where your tax dollars went, it’s very well done and other countries should have the same, try it at “Where did my tax dollars go?“. Very cool. I would also like to wish all of you a long weekend and Happy Easter!

Top Canadian Dividend stocks – Anything good besides banks? @ TheDividendGuyBlog
Are DRIP’s suitable for you? @ WhatIsDividend
The tablet market is Apple’s market for at least 2 years as per Goldman Sachs @ All Things Digital
Investing in the face of high inflation @ ObliviousInvestor
Is it true? @ Macro Man
Brian Hunter fined $30 million for nat gas price manipulation @ ZeroHedge
Alberta’s Red Earth Slave Point Formation Oil Play @ Beating The Index
MBA programs – which one to choose? @ Experiglot
Yahoo points the finger at Microsoft for revenue shortfall @ TechCrunch
Financial Planner vs Stock Broker – who’s who? @ TheFinancialBlogger
Abbott Laboratories (ABT) dividend stock analysis @ DividendMonk
Is it too late to start studying for the CFA? @ SmartFinancialAnalyst

And finally the trailer for HBO’s upcoming “Too big to fail”

Adding a new tech stock to our radar: Youku (YOKU)

By: ispeculatornew | Date posted: 04.22.2011 (7:07 am)

We have never hidden our admiration and long term desire to hold Google and there is no doubt that the $1.65 billion purchase of Youtube a few years ago proved to be a great move. The video division has become so critical that it in the new Larry Page era, it is now managed fairly independently. That says a lot. Anyway, last week I discussed my strong belief that internet leaders in China will prove to be great investments and while Baidu (BIDU) dominates search and seems headed to domination in social thanks to its new alliance with Facebook, Youku (YOKU) is the leader in video, the Chinese Youtube.

That has brought a lot of hype. To give you an idea, the stock IPO’d at $33.44 last December and is alreadup nearly 100%…..

One of the things that I would recommend if you are considering investing in Youku (YOKU) is looking carefully at their financial statements which you can find here. You will notice that despite the company losing money in every quarter, its stock is currently over 60$ which values the company at around $7 Billion. Is it similar to the Youtube from a few years ago? As you can imagine, the company is growing at an incredible pace with revenues more than doubling in the last year. The question of course remains how long it will take and how profitable Youku will become…

Here are some highlights:

-revenues increased 152% in 2010 to $58.7 million
-net loss was $31 million, a 12% increase from 2009

Pros:

Youtube Potential : No doubt, Youku has a lot of potential. It’s easy to imagine how important the largest video website in the most important market could represent. Youku could become not only a huge internet player but they seem to be much more advanced than Youtube was in terms of professional content and there is certainly a lot of potential both from an advertisement point of view but also possibly getting paid subscribers at some point.

Leader in China: I discussed this last week but I truly believe that both the Chinese and their government will be pushing hard to make sure that they have some true leaders and while Baidu has clearly reached this status already, other positions are for grabs and Youku could certainly become one of them. If it does reach that status, I would expect huge benefits in terms of protection from competition, etc.

No competition from Youtube : In an internet world dominated by Youtube, Youku lives in a very good world. Why? Not only is Youtube banned in China but the owner Google, is in very bad terms with China and the new leadership by Larry Page is unlikely to put much effort into restoring that relationship. That leaves video in China wide open and lets Youku enjoy a benefit that competitors in other countries do not have; no competition from the might Google.

Cons:

No profitability: While Google does not disclose numbers per unit or per property, most analysts still consider Youtube to be a success but one that is not profitable. It might be, but if it is, it would only be slightly so. Why? There are huge bandwidth costs, sales, and growing content creation costs. All of those are increasing quickly and face a new market that is much more challenging. One of the reasons of course is that advertisers are often reluctant to have visibility next to a video that they have so little control over. All of this has presented many challenges to Google in its quest to make Youtube profitable. It’s easy to imagine how Youku, a few years behind in almost every aspect will be able to become profitable quickly. Will investors become impatient if they see costs rising faster than revenues? That is a very likely scenario in my opinion and it’s probably what’s still going on at Youtube.

Baidu competition: While Google is not competing through Youtube, Youku still is likely to face increased competition from Baidu and that is even more true thanks to its new joint venture with Facebook. Other big internet players in China such as Sina could also become formidable forces. I think it’s clear that Baidu could easily become a major video player and Youku will be very vulnerable in the coming months or years as it tries to establish itself in the Chinese market. Youku’s partnership with MySpace is nice but let’s just sat that a partnership with MySpace is a poor man’s alternative to a Facebook partnership.

China: Youku is basically only present in China and that certainly presents its challenges for foreign investors. First off, we have very little information about what is happening in the Chinese market both socially among the users but also the trends, government influences, etc. Also, major changes in trends for Chinese users might take a few days or more to reach our ears, that is certainly a concern with all of these Chinese companies.

Overall thoughts

I think Youku might become a very solid player and while I do consider it a major gamble at this point, I would consider trading it. Not as a long/short player on this blog but rather as a more long term play. It could certainly turn out to be a home run but also could be a failure. I think it’s a smart purchase at this point. I would love to hear your thoughts on this.

Are you carrying around dead weight? 11 stocks to sell from your passive income dividend portfolio…

By: ispeculatornew | Date posted: 04.21.2011 (4:53 am)

Earlier this month, we did some screening looking for dividend stocks that had good potential in our free newsletter. Our starting point was a bit different as we were looking for companies that were already paying a dividend yield of 5% or more. We did come up with 3 results that are now being discussed in our newsletter, for more information, just sign up here:

In any case, one of the comments that I received after sending out my analysis of the first name that came out was that I should be more focused on dividend growth. I couldn’t agree more in general and I have often discussed the importance of looking for dividend growth. That got me thinking… how many of us carry dead meat in our portfolios? I bet we all do to some extent right? I mean it’s always tempting to go after stocks that already offer a high dividend yield. So I did some more screening and came up with the worst of the worst…:

Weyerhaeuser Co (WY)
Masco Corp (MAS)
Nicor Inc (GAS)
Sempra Energy (SRE)
Northeast Utilities (NU)
CenterPoint Energy Inc (CNP)
H&R Block Inc (HRB)
NiSource Inc (NI)
Constellation Energy Group Inc (CEG)
Molson Coors Brewing Co (TAP)

Why are these companies to sell and how did I come up with them?

First off, I simply took all companies in the S&P500 that pay a dividend of 2% or more. From there, it was quite simple. Do any of these companies have sales declining by 5% (or more) on average over 5 years? I mean you have to do very badly to regress by so much over 5 years don’t you think? Sales are the number one way for me to find this dead meat because a company that has declining sales will usually have declining profits and eventually declining dividends. There’s always a possibility that declining sales would be caused by the sale of a unit or part of a company and further analysis will be required for that.

Here are the complete numbers for these companies:

[table “270” not found /]

Do you agree? What are your thoughts and would you own a company that has such negative momentum in its underlying business? If so, under what circumstances?

Weyerhaeuser Co (WY)
Altria Group Inc (MO)
Masco Corp (MAS)
Nicor Inc (GAS)
Sempra Energy (SRE)
Northeast Utilities (NU)
CenterPoint Energy Inc (CNP)
H&R Block Inc (HRB)
NiSource Inc (NI)
Constellation Energy Group Inc (CEG)
Molson Coors Brewing Co (TAP)

Is the war on drugs about to come to an end?

By: ispeculatornew | Date posted: 04.20.2011 (5:00 am)

Last week, I read the fascinating story of two submarines that have been seized by the US government. They were not owned by China, North Korea or some rogue regime. Rather, the submarines were built up by drug cartels as a better way to smuggle drugs, especially cocaine anywhere in the world, especially in the US obviously. The potential benefits of building up a submarine that can transport several tons of the substance at once are significant and while we do not know how much of this is currently going on, it’s safe to assume that many subs are going back and forth with merchandise. Once in a while, they get caught and that is part of business of course and it’s still a profitable transaction overall. I was a bit surprised to see that these cartels are becoming so high tech and it’s certainly a sign of how difficult it has became for law enforcement agencies to compete with these cartels with seemingly unlimited budgets.

What if there was an even better way?

Last week, I saw a video of a new kind of birds… “Smartbirds”. Just take a look at the video. These birds are “robots” controlled by distance but they look almost exactly like the real thing. It’s amazing and breathtaking in my opinion. The thing is that the possibilities are incredible with such automated tools. In the case we were mentioning… while a bird could not possibly transport as much drugs as a submarine, just think about how difficult it would become for law enforcement. Would it even be worth it trying to figure out the difference between the real and the fake birds in order to shoot them down? It’s not obvious to me yet how such extreme automation will translate into more “legal” businesses but it’s clear that many of these applications will be game changers.

What it means to your portfolio?

Obviously, I’m not saying that you should run to your broker and buy shares of Festo (the company behind this bird). First off, the company is not publicly traded but it’s not clear that this Germany company will come out on top despite clearly being one of the most innovative ones. However, I always think it’s important to try to see the possibilities of specific technologies and how big specific markets could eventually become. I will certainly be looking into these technologies in the coming months and will hopefully find some nice potential purchases.

What are your thoughts on this? Am I crazy to think that with technologies like that, it will become virtually impossible to stop drug transportation? And what other potential usage do you see for such automated items?

My final question…do you know of a listed company that could offer exposure to a similar technology?

Make your investment portfolio grow faster!!

By: ispeculatornew | Date posted: 04.19.2011 (6:00 am)

It’s a classic trap and one that we all get caught on at some point. Whenever you start calculating how much you need in your passive income portfolio to live off of it. Or how much your “number” is to retire on… or when you look at your annual returns. It’s always tempting to change a few basic assumptions. For example, instead of targeting a 5-6% return, why not be more aggressive and go for 10%? It would help you retire earlier, need less for retirement, have your assets grow faster, etc. It’s a huge temptation to turn on the switch, go for emerging markets, derivative products, etc.

It’s not about making your portfolio riskier

I would argue that it’s generally a bad idea though. Your target return and asset allocation should not be determined by how long it will take you to reach your retirement age. It should be determined by your tolerance to risk and for volatility in returns. The question then becomes… how can you make your portfolio grow faster? Here are a few methods I would suggest:

Consider taxes when investing

Obviously, invest as much tax free money as you can in retirement accounts. The impact of no taxation over long periods of time is incredible and easy to underestimate. There are very few reasons to not try to max these out. For all other accounts, consider tax impacts of buying tax exempt municipal bonds or selling specific positions that will generate capital gains, etc. It’s easy to underestimate the importance of minimizing taxes paid on your investments.

If your employer is giving you money, take it

Many companies offer subsidies if you purchase your employers stock. In almost all cases, it’s significant enough to be taken advantage of. You should buy as much as you can to get the “free money”. Then, simply be disciplined enough to sell it over time according to the specifications that are applicable. You might not be able to sell it for a few months, a year or more and that is fine. But start selling it when you can to remain diversified.

Make it automatic

There’s no better way to increase your investments than to make your contributions automatic. Take them out on pay day so that you’ll never have seen (or spent) the money and it will become a habit. By year’s end, you will be shocked at how much you saved. If you feel like you can’t, start with a few dollars and increase it over time little by little. Over your life, that amount will make an incredible difference.

Reinvest one time amounts (gifts, tax refunds, inheritance)

When you receive significant amounts either from  the government, as gifts, etc. Be sure to save the majority if not all of that amount. Not only will it help your investments but it will also help you avoid jumping into expensive adventures such as buying an incredible car which will end up costing you in insurance and other costs.

Invest away a big part of your next raise

If you get a raise, don’t get used to it. For example, if your new pay nets you 100$ more per month, increase your automatic savings by 75-80$. That will give you some joy but will mostly help you save a lot more without actually having to diminish your living level. Over time, this can mean big rises in your automatic savings which as I stated before, are the major key in helping your portfolio get bigger faster.

Save on taxes

Either get an accountant or get the information yourself but make sure you are aware of any strategies, deductions or any kind of action that will help you diminish your taxes. Remember that will help increase your tax returns which will be invested away. Saving a few hundred or thousand dollars can mean a huge difference over time. The compound effect is your best friend.

Manage your money yourself

I’ve written about this in the past but if you can manage your money yourself, you will be saving a huge amount of money over time for many different reasons. You will save on management fees, transaction fees and in many other ways. The great thing about it is also that you will end up knowing much more about your finances and feeling confident about it. It does require some work but it’s well worth it and much easier than you could imagine.

No mutual funds

Why pay 2% of annual fees on your money when you can pay less than half through ETF’s, and often many times less. I have written about ETF’s and mutual funds in the past and as your assets grow, this becomes even more important to help you grow more quickly.

Minimize trading fees

If you manage your own portfolio, you will already likely see less trades happening and have more control over them. In most cases, there’s no point in trading every week and even less point in trading every day. You can only try to stick to your plan and that will go a long way.

What are the ways that you use to make your portfolio grow more quickly?